The actual process of converting a sum of money into a stream of income and the point at which annuity payments begin. For example, with Social Security the sum of money that has hypothetically been accumulating over one’s working years would be annuitized when the person chooses to begin receiving Social Security benefits.

Understanding the Value of Living Benefit Guarantees

Advisor Perspectives just published the first in a series of articles from Wade Pfau. These pieces are important and should be read by anyone considering guaranteed lifetime withdrawal benefits or any of the other optional...

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Questioning the Need for Bonds in Retirement

Conventional financial wisdom says that bonds should comprise an increasing percentage of a portfolio as the owner ages and heads into retirement.

In theory, a retiree’s need for income and a reduced tolerance for risk are the main drivers of the larger allocation to bonds.

A key consideration, though, is...

Mark Warshawsky on the Retirement Income Market

Mark J. Warshawsky is Director of Retirement Research at Towers Watson.

Dr. Warshawsky served as assistant secretary for economic policy at the U.S. Treasury Department from 2004-2006 and he has held senior level economic research positions at the Federal Reserve Board, the Internal Revenue Service and...

A Benchmark for Lifetime Income

The world is filled with investing indexes and benchmarks, and all professional investment managers measure their results relative to some type of performance standard such as the S&P 500.

On the retirement...

SOA Paper Examines Retirement Income Reality Gap

A recent paper sponsored by the...